Morgan Stanley MS · USD

Segment, Geographic and Revenue Information The Firm structures its segments primarily based upon the nature of the financial products and services provided to customers and its management organization, which is consistent with the approach used by the Firm’s chief operating decision maker (“CODM”) to assess the Firm’s financial performance. The Firm provides a wide range of financial products and services to its customers in each of its business segments: Institutional Securities, Wealth Management and Investment Management. For a further discussion of the business segments, see Note 1.Revenues and expenses directly associated with each respective business segment are included in determining its operating results. Other revenues and expenses that are not directly attributable to a particular business segment are generally allocated based on each business segment’s respective net revenues, non-interest expenses or other relevant measures.As a result of revenues and expenses from transactions with other operating segments being treated as transactions with external parties for purposes of segment disclosures, the Firm includes an Intersegment Eliminations category to reconcile the business segment results to the consolidated results.The Firm’s CODM is its Chief Executive Officer, who evaluates segment performance and allocates resources based on numerous business, strategic and financial considerations. The CODM’s financial considerations include analysis of multiple segment profit measures, such as Income before provision for income taxes and Pre-tax margin. Furthermore, the CODM evaluates certain additional segment performance metrics including Return on average common equity. The segment profit measures are calculated in accordance with U.S. GAAP and are consistent with the amounts presented in the Firm’s consolidated income statement.The CODM’s review of the profit measures includes evaluation of segment profitability and assessment of actual results compared to budget. These measures are regularly provided to the CODM and are a component of a multifaceted decision-making process regarding segment performance as well as resource and capital allocation.

Commitments, Guarantees and Contingencies CommitmentsYears to Maturity at December 31, 2025$ in millionsLess than 11-33-5Over 5TotalLending:Corporate$23,398 $48,607 $79,273 $5,843 $157,121 Secured lending facilities5,341 8,035 10,429 5,930 29,735 Commercial and Residential real estate66 115 173 465 819 Securities-based lending and Other17,663 3,094 230 504 21,491 Forward-starting secured financing receivables1138,050 2,782 — — 140,832 Central counterparty14,062 — — — 14,062 Investment activities2,319 94 80 503 2,996 Letters of credit and other financial guarantees30 3 — 5 38 Total$200,929 $62,730 $90,185 $13,250 $367,094 Lending commitments participated to third parties$12,164 1.These amounts primarily include secured financing receivables yet to settle as of December 31, 2025, with settlement generally occurring within three business days. These amounts also include commitments to enter into certain collateralized financing transactions.Since commitments associated with these instruments may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements.Types of CommitmentsLending Commitments. Lending commitments primarily represent the notional amount of legally binding obligations to provide funding to clients for different types of loan transactions. For syndications that are led by the Firm, the lending commitments accepted by the borrower but not yet closed are net of the amounts agreed to by counterparties that will participate in the syndication. For syndications that the Firm participates in and does not lead, lending commitments accepted by the borrower but not yet closed include only the amount that the Firm expects it will be allocated from the lead syndicate bank. Due to the nature of the Firm’s obligations under the commitments, these amounts include certain commitments participated to third parties.Forward-Starting Secured Financing Receivables. These amounts include securities purchased under agreements to resell and securities borrowed that the Firm has entered into prior to the balance sheet date that will settle after the balance sheet date. These transactions are primarily secured by collateral from U.S. government agency securities and other sovereign government obligations when they are funded.Central Counterparty. These commitments relate to the Firm’s membership in certain clearinghouses and are contingent upon the default of a clearinghouse member or other stress events.

Loans, Lending Commitments and Related Allowance for Credit Losses The Firm’s held-for-investment and held-for-sale loan portfolios consist of the following types of loans:•Corporate. Corporate includes revolving lines of credit, term loans and bridge loans made to corporate entities for a variety of purposes.•Secured Lending Facilities. Secured lending facilities include loans provided to clients, which are collateralized by various assets, including residential and commercial real estate mortgage loans, investor commitments for capital calls, corporate loans and other assets.•Commercial Real Estate. Commercial real estate loans include owner-occupied loans and income-producing loans.•Residential Real Estate. Residential real estate loans mainly include non-conforming loans and HELOC.•Securities-based Lending and Other. Securities-based lending includes loans that allow clients to borrow money against the value of qualifying securities, generally for any suitable purpose other than purchasing, trading, or carrying securities or refinancing margin debt. The majority of these loans are structured as revolving lines of credit. Other primarily includes certain loans originated in the tailored lending business within the Wealth Management business segment.Loans by Type At December 31, 2025$ in millionsHFI LoansHFS LoansTotal LoansCorporate$7,277 $7,202 $14,479 Secured lending facilities69,149 1,817 70,966 Commercial real estate8,039 320 8,359 Residential real estate72,403 5 72,408 Securities-based lending and Other112,984 30 113,014 Total loans269,852 9,374 279,226 ACL(1,132)(1,132)Total loans, net$268,720 $9,374 $278,094 Loans to non-U.S. borrowers, net$34,532 $3,622 $38,154 At December 31, 2024$ in millionsHFI LoansHFS LoansTotal LoansCorporate$6,889 $9,183 $16,072 Secured lending facilities48,842 2,507 51,349 Commercial real estate8,412 628 9,040 Residential real estate66,738 — 66,738 Securities-based lending and Other 96,019 1 96,020 Total loans226,900 12,319 239,219 ACL(1,066)(1,066)Total loans, net$225,834 $12,319 $238,153 Loans to non-U.S.

Income Taxes Components of Provision for Income Taxes$ in millions202520242023CurrentU.S. federal$2,232 $2,011 $1,190 State and local 601 660 542 Foreign1,535 1,244 1,314 Total$4,368 $3,915 $3,046 DeferredU.S. federal $394 $8 $(295)State and local 91 (6)(59)Foreign76 150 (109)Total$561 $152 $(463)Provision for income taxes$4,929 $4,067 $2,583 Reconciliation of U.S. Federal Statutory Income Tax to Effective Income TaxYear Ended December 31,$ in millions202520242023$%$%$%U.S. federal statutory tax$4,610 21.0 %$3,695 21.0 %$2,481 21.0 %State and local taxes1430 2.0 378 2.1 292 2.5 Foreign taxesIndiaCapital gains tax115 0.5 205 1.2 50 0.4 Other14 0.1 15 0.1 11 0.1 BrazilCapital gains tax17 0.1 21 0.1 347 2.9 Other22 0.1 15 0.1 15 0.1 Other jurisdictions252 1.1 161 0.9 80 0.7 Changes in tax laws and rates— 0.0 15 0.1 — 0.0 Cross-border taxes12 0.1 30 0.2 47 0.4 U.S. tax creditsGeneral business credits(260)(1.2)(295)(1.7)(285)(2.4)Foreign tax credit(28)(0.1)(50)(0.3)(375)(3.2)Changes in valuation allowances9 0.0 14 0.1 (2)0.0 Nontaxable or nondeductible itemsIncome/(loss) from affiliates(413)(1.9)(368)(2.1)(241)(2.0)Employee share-based compensation(167)(0.8)(71)(0.4)(138)(1.2)Other30 0.1 36 0.2 79 0.7 Unrecognized tax benefits99 0.5 77 0.4 66 0.6 OtherProportional amortization187 0.9 189 1.1 156 1.3 Effective tax$4,929 22.5 %$4,067 23.1 %$2,583 21.9 %1.Amounts are net of U.S. federal income tax benefits. The tax effects in this category were primarily related to New York State and City in 2025, 2024 and 2023.Income Taxes Paid, Net of Refunds$ in millions202520242023U.S. federal $1,501 $452 $408 State and local New York State * 111 *New York City*126 *Other433 96 233 Foreign U.K.441 200 257 India189 235 126 Brazil*99 382 Japan**179 Germany**153 Other940 566 297 Total$3,504 $1,885 $2,035 *The amount of incomes taxes paid during the year does not meet the 5% disaggregation threshold and has been included in the relevant Other category above.

Other Assets and Leases Equity Method Investments $ in millionsAtDecember 31, 2025AtDecember 31, 2024Investments$2,054 $1,869 $ in millions202520242023Income (loss)$246 $241 $124 Equity method investments, other than investments in certain fund interests, are summarized above and are included in Other assets in the balance sheet with related income or loss included in Other revenues in the income statement. See “Net Asset Value Measurements—Fund Interests” in Note 4 for the carrying value of certain of the Firm’s fund interests, which are composed of general and limited partnership interests, as well as any related carried interest. Japanese Securities Joint Venture$ in millions202520242023Income (loss) from investment in MUMSS$123 $146 $129 The Firm and Mitsubishi UFJ Financial Group, Inc. (“MUFG”) formed a joint venture in Japan comprising their respective investment banking and securities businesses by forming two joint venture companies, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”) (collectively, the “Joint Venture”). The Firm owns a 40% economic interest in the Joint Venture, and MUFG owns the other 60%.The Firm’s 40% voting interest in MUMSS is accounted for under the equity method within the Institutional Securities business segment and is included in the equity method investment balances above. The Firm consolidates MSMS into the Institutional Securities business segment, based on its 51% voting interest.The Firm engages in transactions in the ordinary course of business with MUFG and its affiliates; for example, investment banking, financial advisory, sales and trading, including foreign exchange trading and equity transactions for institutional clients and Japanese research, derivatives, investment management, lending, securitization and other financial services transactions. Such transactions are on substantially the same terms as those that would be available to unrelated third parties for comparable transactions. Tax Equity InvestmentsThe Firm invests in tax equity investment interests which entitle the Firm to a share of tax credits and other income tax benefits generated by the projects underlying the investments. The Firm accounts for certain renewable energy and other tax equity investments programs using the proportional amortization method.

Risk management and strategyWe, our businesses, and the broader financial services industry face an increasingly complex and evolving threat environment. We have made and continue to make substantial investments in cybersecurity and fraud prevention technology, and employ experienced talent to lead our Cybersecurity and Information Security organizations and program under the oversight of the Board and the BOTC. See “Risk Factors—Operational Risk” for information on risks to the Firm from cybersecurity threats.As part of the ERM framework, we have implemented and maintain a program that is designed to identify and manage risks arising from the cybersecurity threats confronting the Firm (“Cybersecurity Program”). Our Cybersecurity Program helps protect our clients, customers, employees, property, products, services and reputation by seeking to preserve the confidentiality, integrity and availability of information, enable the secure delivery of financial services, and protect the business and the safe operation of our technology systems. We continually review our Cybersecurity Program, and make adjustments where appropriate, to address the evolving cybersecurity threat landscape, including threats arising from new technologies, such as generative artificial intelligence, and comply with extensive legal and regulatory expectations.Processes for assessing, identifying and managing material risks from cybersecurity threatsOur Cybersecurity Program takes into account industry best practices and addresses risks from cybersecurity threats to our network, infrastructure, computing environment and the third parties that we rely on. We periodically assess the design of our cybersecurity controls against the Cyber Risk Institute Cyber Profile, which is based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework for Improving Critical Infrastructure Cybersecurity, as well as applicable global cybersecurity regulations, and develop improvements to those controls in response to that assessment where necessary. Our Cybersecurity Program also includes cybersecurity and information security policies, procedures and technologies that are designed to address regulatory requirements and protect our clients’, employees’ and own data against unauthorized disclosure, modification and misuse.

Deposits Deposits$ in millionsAtDecember 31,2025 AtDecember 31,2024 Savings and demand deposits$315,883 $299,898 Time deposits99,640 76,109 Total deposits$415,523 $376,007 Deposits subject to FDIC insurance$331,322 $298,351 Deposits not subject to FDIC insurance$84,201 $77,656 Time Deposit Maturities$ in millionsAtDecember 31, 20252026$44,380 202723,390 202813,670 20299,570 20308,260 Thereafter370 Total$99,640 Uninsured Non-U.S. Time Deposit Maturities$ in millionsAtDecember 31, 2025Less than 3 months$2,187 3 - 6 months860 6 - 12 months747 Over 12 months76 Total$3,870 Deposits in U.S. Bank Subsidiaries from Non-U.S. Depositors$ in millionsAt December 31, 2025At December 31, 2024Deposits in U.S. bank subsidiaries from non-U.S.

Fair ValuesRecurring Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis At December 31, 2025$ in millionsLevel 1Level 2Level 3Netting1TotalAssets at fair valueTrading assets:U.S. Treasury and agency securities$70,801 $48,504 $— $— $119,305 Other sovereign government obligations44,790 359 59 — 45,208 State and municipal securities— 3,740 — — 3,740 MABS— 2,326 317 — 2,643 Loans and lending commitments2— 9,520 1,424 — 10,944 Corporate and other debt3,720 32,117 1,414 — 37,251 Corporate equities3,5161,160 823 276 — 162,259 Derivative and other contracts:Interest rate2,231 125,002 452 — 127,685 Credit— 10,081 263 — 10,344 Foreign exchange11 85,969 165 — 86,145 Equity7,335 85,077 717 — 93,129 Commodity and other222 13,746 2,494 — 16,462 Netting1(7,509)(247,840)(1,049)(40,577)(296,975)Total derivative and other contracts2,290 72,035 3,042 (40,577)36,790 Investments4,5795 416 1,507 — 2,718 Physical commodities— 685 — — 685 Total trading assets4283,556 170,525 8,039 (40,577)421,543 Investment securities —AFS80,907 29,559 — — 110,466 Total assets at fair value$364,463 $200,084 $8,039 $(40,577)$532,009 At December 31, 2025$ in millionsLevel 1Level 2Level 3Netting1TotalLiabilities at fair valueDeposits$— $8,754 $1 $— $8,755 Trading liabilities:U.S. Treasury and agency securities19,297 2 — — 19,299 Other sovereign government obligations23,534 28 2 — 23,564 Corporate and other debt1,447 14,138 50 — 15,635 Corporate equities368,989 27 30 — 69,046 Derivative and other contracts:Interest rate2,189 113,060 606 — 115,855 Credit— 10,520 176 — 10,696 Foreign exchange70 82,887 129 — 83,086 Equity6,253 114,930 2,150 — 123,333 Commodity and other264 13,338 1,574 — 15,176 Netting1(7,509)(247,840)(1,049)(49,723)(306,121)Total derivative and other contracts1,267 86,895 3,586 (49,723)42,025 Total trading liabilities114,534 101,090 3,668 (49,723)169,569 Securities sold under agreements to repurchase— 251 445 — 696 Other secured financings— 16,565 306 — 16,871 Borrowings— 131,871 608 — 132,479 Total liabilities at fair value$114,534 $258,531 $5,028 $(49,723)$328,370 At December 31, 2024$ in millionsLevel 1Level 2Level 3Netting1TotalAssets at fair valueTrading assets:U.S.